Logo
Logo

Xbox laid off Bethesda staff on the same day it announced new Fallout games

Unions claim that announcements regarding new Fallout titles were used as a smoke screen to cover up illegal layoffs conducted by Bethesda. On July 17, Bethesda pleased fans of the franchise by revealing plans to release several new entries, while simultaneously working behind the scenes to prematurely terminate the contracts of numerous developers in Canada.

Xbox laid off Bethesda staff on the same day it announced new Fallout games
Xbox laid off Bethesda staff on the same day it announced new Fallout games

Sudden terminations and union allegations

According to the OneBGS union, which represents the affected workers, the public announcement of the new Fallout games was timed to coincide with the termination decision to fill news outlets with positive coverage about Bethesda.

The union states that studio leadership ended contract work months earlier than anticipated, offering no severance or negotiation attempts:

Union Timeline and Actions: Workers were initially told they would remain employed through September while the company negotiated severance with the union. However, on July 17, studio leadership sent emails stating that contracts would terminate that very same day.

Furthermore, Bethesda elected to pay only the legal minimum required under Canadian law and immediately cut all health coverage provided to affected workers.

Legal action against Bethesda and Microsoft

In response, OneBGS filed legal action against both Bethesda and its parent company, Microsoft. Similar legal steps were taken by the Communication Workers of America and CWA Canada, other representation groups for studio workers.

The unions accuse the corporations of using the game announcements to:

  • Violate labor laws and collective bargaining agreements.
  • Fail to meet statutory obligations to discuss layoff terms with worker representatives during ongoing negotiations for a major contract.

Impact on studio morale and future projects

Reports from inside Bethesda reveal that the Xbox-driven layoffs have severely impacted employee morale among remaining staff, with many expressing ongoing job insecurity.

  • Project Delays: The loss of institutional knowledge is expected to delay the release of new Fallout and The Elder Scrolls titles.
  • Service Closures at ZeniMax Online: Following significant staff losses, ZeniMax Online demonstrated the immediate operational consequences of the cuts. On Wednesday, July 22, the studio announced it will shut down the browser-based version of The Elder Scrolls Online‘s Crown Store because it no longer has the personnel necessary to maintain it.

Categories:

Most recent

Insomniac explains Marvel’s Wolverine regenerating suit feature

Insomniac explains Marvel’s Wolverine regenerating suit feature

Insomniac Games has addressed a unique detail featured in recent previews and promotional videos for Marvel’s Wolverine: after battles, not only does Logan's body heal through his sharp healing factor, but his suit also regenerates.

Marvel’s Wolverine to run at 60 FPS with ray tracing on base PS5

Marvel’s Wolverine to run at 60 FPS with ray tracing on base PS5

Insomniac Games has confirmed that Marvel’s Wolverine will run at 60 frames per second (FPS) with ray tracing enabled as its default mode on the base PlayStation 5 console. The game will also feature widespread environment destruction, reactive vegetation, and launch-day replayability features, including New Game Plus.

GTA 6 pre-orders alone could cover entire game production costs

GTA 6 pre-orders alone could cover entire game production costs

Pre-orders for Grand Theft Auto 6 (GTA 6)—already described as unprecedented by publisher Take-Two Interactive—may have already recovered the game's primary production costs, according to market tracking firm Sensor Tower.

Elden Ring Tarnished Edition receives new story trailer ahead of Nintendo Switch 2 debut

Elden Ring Tarnished Edition receives new story trailer ahead of Nintendo Switch 2 debut

Bandai Namco has released a new story trailer for Elden Ring Tarnished Edition, marking the arrival of FromSoftware's action RPG on the Nintendo Switch 2. The game is scheduled to launch on August 28 and is currently available for pre-order.

Phantom Blade Zero releases new trailer and opens pre-orders for PS5 and PC

Phantom Blade Zero releases new trailer and opens pre-orders for PS5 and PC

S-Game has officially opened pre-orders for Phantom Blade Zero on PlayStation 5 and PC alongside the release of a new 11-minute gameplay trailer. The game is scheduled to launch on October 28, offering players both a Standard Edition and a Digital Deluxe Edition.

Marvel Tōkon receives first PC patch to address FPS drops and instability following criticism

Marvel Tōkon receives first PC patch to address FPS drops and instability following criticism

Developer Arc System Works released the first post-launch patch for the PC version of MARVEL Tōkon: Fighting Souls on Monday (10). The update aims to bring the PC experience to parity with the PlayStation 5 version following a week of widespread reports regarding frame rate drops and online instability.